Exam 6: Target Markets Segmentation and Evaluation

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

Segmentation variables are characteristics of individuals, groups, or organizations in a total market.

A company sometimes defines a total market as its target market.

​In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of?

One condition for effective segmentation is that at least one segment must have substantial profit potential.

The primary advantage of a concentrated targeting strategy is

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

A company sales forecast is the amount of a product that a company expects to sell during a specific time period at a specified level of marketing activities.

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

The ability to purchase a product is a function of

Scenario 6.2 Use the following to answer the questions.GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. -Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy.

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

​If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.

The sum of firms' marketing efforts equals industry marketing efforts.